The highest negative gap was found in tangibility
dimension as reported by Al Fraihi and Latif, (10) and Zarei et al.
BANK_DEBT/TOTAL_DEBT = f(MLSV, EXCESS)_CONTROL, TANGIBILITY
, PROFITABILITY, TOBIN_Q, Z_SCORE, LEVERAGE, SIZE, Industry dummies, Year dummies), (3)
In the survey, they identified the size, profitability, tangibility
and the growth opportunity as determinants of capital structure of those companies.
In both cases, the coefficients were controlled in terms of sizing, tangibility
, and growth, as they are traditional determinants of capital structure (Titman & Wessels, 1988).
Trade-off and agency theories predicate, and the majority of empirical studies indicate, that leverage is positively correlated with firm tangibility
Results for the tangibility
variable reveal that, on average, there is a higher level of this kind of assets in firms with low growth opportunities.
expansionary or contractionary) due to their individual characteristics like size, tangibility
, and leverage.
FIRM BEHAVIOR USING TANGIBILITY
RATIOS AS FIRM FINANCIAL HEALTH INDICATOR
This scale has 22 items divided into five dimensions: tangibility
, reliability, responsiveness, assurance and empathy.
This can be interpreted as the manifestation of the maturation process which leads the Polish economy to become more conforming to the economies of developed countries for which the aforementioned positive of tangibility
has on leverage is typical, which was confirmed in many empirical studies.
1 Resource Tangibility
and Foreign Firms' Political Strategies in Emerging Economies
Thus, empirically, scholars sought to explain the companies' funding structure primarily through their characteristics, such as size, profitability, tangibility
, growth opportunities, risk, among others.